Home prices, Housing starts, Home Sales increasing
Two reports on Calgary's housing market indicate an upward trend of prices, sales, and housing starts. "Calgary Housing Market Rebound Continues" writes the The Calgary Real Estate Board (CREB) in its November News Release
The CREB reports that the average price of a single family Calgary metro home in October 2009 was $462,465, an increase of 1% from September, and an increase of 3% from October 2008. The average price of a Calgary metro condo was $289,155 - no significant change over last year or from September. The median price of a single family Calgary metro home in October 2009 was $410,000, a 3% increase from September and up 5% from October 2008. The median price of a condo in October 2009 was $263,500, down 1% from September and down 2% from October 2008.
CREB also reports that in Calgary Metro, the number of single family homes and condos sold in Oct 2009 are both up from the same time a year ago. October recorded 1,285 single family homes sold - an increase of 57% from Oct 2008 and 2% from Sept 2009. The number of condo sales for Oct 2009 was 601, an increase of 51% from Oct 2008 and an increase of 4% from Sept 2009.
New Home starts are also expected to increase. The Canada Mortgage and Housing Corporation (CMHC) estimates that in 2010, housing starts will increase to 6,700 in the Calgary area, up from the 5,550 expected this year - an increase of nearly 21%. CMHC senior market analyst Richard Cho said builders' lower inventory levels are behind the brisker pace of construction expected for next year. CMHC predicts that as the upward trend in energy prices continues and Alberta's resource economy and the job market improves, there will be an increase in the number of people moving into the province. CMHC's report says that Net migration, is expected to rise to 56,000 in 2010, up from 50,000 this year and down from almost 66,000 in 2008.
CMHC says influx of people moving to Alberta is the main reason for predicted increase in housing starts and prices. CMHC said the average MLS price in Calgary, including condominiums, is forecast to climb by more than $18,000 next year to $403,000 from $384,500 this year. Across Alberta in 2010, the forecast is that prices may climb to an average $354,000, up from $339,000 this year.
Sources: Home prices expected to rise, by Markus Ermisch, Calgary Sun, Nov 3rd, 2009. Calgary Real Estate Board News Release "Calgary Housing Market Rebound Continues", Nov 2/09, See our Calgary Market Trends page for links to CREB's 2009 News Releases and Stats.